Lockheed Martin ELECTRONICS PLATFORM INTEGRATION 31 January 2000

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Lockheed MartinELECTRONICS PLATFORM
INTEGRATION31 January 2000
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Microsoft R.O.W.Microsoft GM
Ford Boeing Lockheed Martin Deere
Caterpillar USX Weyerhauser Union Pacific
Kodak Sears Marriott Safeway
KelloggSource Business Week data through 5-99
3
Microsoft R.O.W. (II)Microsoft GM
Ford Boeing Lockheed Martin Deere
Caterpillar USX Weyerhauser Union Pacific
Kodak Sears Marriott Safeway Kellogg
McDonalds Bank One General Mills American
Airlines United Airlines Delta Air Lines
US Airways Quaker OatsSource Yastrow
Marketing (through 11-23-99)
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No Wiggle Room! Incrementalism is innovations
worst enemy. Nicholas Negroponte
5
Just Say No I dont intend to be known as
the King of the Tinkerers. CEO, large
financial services company (New York, 5-99)
6
Forces at WorkThe Destruction Imperative!
7
Forget LearnThe problem is never how to
get new, innovative thoughts into your mind, but
how to get old ones out. Dee Hock
8
When asked to name just one big merger that had
lived up to expectations, Leon Cooperman, former
co-chairman of Goldman Sachs Investment Policy
Committee, answered Im sure there are success
stories out there, but at this moment I draw a
blank. Mark Sirower, The Synergy Trap
9
Acquisitions are about buying market share. Our
challenge is to create markets. There is a big
difference. Peter Job, CEO, Reuters

10
Our ideal acquisition is a small startup that
has a great technology product on the drawing
board that is going to come out in six to twelve
months. We buy the engineers and the next
generation product. John Chambers,
Cisco Systems
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R DIntels venture fund 275 investments,
3.5BSource Fast Company (12-99)
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EcoNets/Internet ZaibatsusThe model is about
partial acquisitions and ownerships that then
form a whole. Each part has to have value
separately, be able to raise capital separately,
and motivate employees separately. Corporations
of the past never had that.Flip Filipowski,
divine interVentures (Red Herring)
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The brick and mortars will die, no matter what.
So you have to take your best employees and
best businesses and spin them off and just own 40
percent of everything thats left. Do that and
you survive.Flip Filipowski, divine
interVentures (Red Herring)
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DYB.com
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DestroyYourBusiness.com (GE)
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It used to be that the big ate the small. Now
the fast eat the slow.Geoff Yang, IVP/
(Institutional Venture Partners)
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E.g. Craig Venter/Celera Genomics
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The Gales of Creative Destruction29M -44M
73M4M 4M - 0M
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Brand InsidePSF 1Brand Org!
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108 X 5vs. 8 X 1 540 vs. 8
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ERP, ECM, Web, Etc.ITS THE GIANT SUCKING SOUND
OF SLACK BEING EXTRACTED FROM THE GLOBAL
ECONOMY!
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The coefficient of friction associated with the
grunge of business is amazing!Michael Schrage
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Cemex and FDX!
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CCC Information Services!
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Assetless CompanyJ.B.
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RR on Sara LeeThe most profitable businesses
in the future will act as knowledge brokers,
linking insights into whats available with
insights into the customers individual needs and
preferences.
27
We want to be the air traffic controllers of
electrons.Bob Nardelli, GE Power Systems
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The -!! in the middleJim Clark on
Healtheon twixt docs, patients and
providers 250B in waste source Michael
Lewis, The New New Thing
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Dont own nothin if you can help it. If you
can, rent your shoes. F.G.
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RD Outsourcing/ Big Pharma31 (70 now 5 in
5 years)12 (5 now 20 in 5 years)Source
IN VIVO
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PSF 1.0Professional Service Firm Conversion Kit
/ Release 1.0
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PSF 1.0 Department Head to Managing
Partner, HR IS, etc. Inc.
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support function / cost center /
bureaucratic dragor Rock Stars of the
Age of Talent
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C.I.O. to C.E.F.R.N.S.
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Chief Evangelist For Really Neat Stuff
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Brand InsidePSF 2Brand Work!
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Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
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But Does It Matter????On time, on budget who
cares? anon. seminar participant (4/99)
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Kaiser 4.15.29
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Liberty Ship2 years240 days9 hours4 days,
15 hours, 29 minutes
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Every project we take on starts with a question
How can we do whats never been done
before?Stuart Hornery, CEO, Lend Lease
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WOW Project Acid TestCan you explain it -
with zest - to your 14-year-old?
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You really got to me. So many of our information
technology projects take on a life of their own,
and I know theyll never end up as more than
mediocre successes. CEO, F100 financial
services company (10-98)
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The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo
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Characteristics of the Also Rans

• minimize risk
• respect the chain of command
• support the boss
• make budget

Source Fortune on most admired global
corporations
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Brand InsidePSF 3Brand You!
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DISTINCT OR EXTINCT!If there is nothing
very special about your work, no matter how hard
you apply yourself, you wont get noticed and
that increasingly means you wont get paid much,
either. Michael Goldhaber, Wired
48
If one quarter cant make the journey, thats
the way it has to be.Carly Fiorina
(1-00/Forbes)
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Personal Brand Equity Eval

• My current Project is challenging me
• New things Ive learned in the last 90 days
  include
• My public recognition program consists of
• I am known for
• Additions to my Rolodex include
• My resume is discernibly different from last
  years at this time

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R.D.A.Rate 15?, 25?Formal Investment
Strategy/R.I.P.
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R.I.P.IS IT ... WOW!?
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R.I.P.10 Major job change new area of
concentration major offsite educational
investment extensive sabbatical oddball
learning experience of 2 months exceptional
community project presidency of fundraising
drive, run for school board.
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R.I.P.5 ... Extensive course work in oddball
area of passionate interest major off-the-job
activity community involvement, learn to play
the cello, study Chinese.1 Company training,
as directed.
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Seminar Y2KMessage Distinct or Extinct!
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Brand InsidePSF 4Brand Talent!
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Issue Y2KThe Great War for Talent!
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The leaders of Great Groups love talent and know
where to find it. They revel in the talent of
others. Warren Bennis Patricia Ward
Biederman
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Alan Kay on PARCs Bob Taylor He was a
connoisseur of talent.
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Our business needs a massive transfusion of
talent. And talent, I believe, is most likely to
be found among non-conformists, dissenters and
rebels. David Ogilvy
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Axiom Never hire anyone without an aberration
in their background. (Find the One Ton Cookie
Man!)
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Attributes of Those Who Made the 10th Grade
History Book

• Committed!
• Determined to make a difference!
• Focused!
• Passionate!
• Irrational about their lifes project!
• Ahead of their time/ Paradigm busters!
• Impatient/ Action Obsessed!

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Attributes of Those Who Made the 10th Grade
History Book

• Made lots of people mad!
• Flouted the chain of command!
• Creative / Quirky / Peculiar!
• Rebels!
• Irreverent!
• Masters of improv / Thrive on chaos/ Exploit
  chaos!

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Attributes of Those Who Made the 10th Grade
History Book

• Forgiveness Permission
• Bone honest!
• Flawed as the dickens!
• In touch with their followers aspirations
• Damn good at what they do!

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Conformity is the jailer of freedom and the
enemy of growth. J.F.K.
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Just Say No to Grout! Participant Dont
you need grout between the tiles?TP No!
med staff, NFL Special Teams,waiters, PFCs,
cymbals player, bit parts, waiters
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The boundaries for acceptable weirdness have
dramatically expanded.Michael Schrage
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Talent War Y2K!

• All out!/ Time consuming!
• Never ending!/ Unwinnable!
• Includes everybody!/ Everybodys game! (Were
  all in sales.)
• Expensive!
• Cool!/ WOW!/ Fun!/ Creative!
• Strategic!/ Core competence!

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Talent Brand
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Brand OutsideBrand Inside
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Brand OutsideContextNo Commodities!
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In the Beginning The audit has become a
commodity.Big 5 audit partner to TP
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Quality Not Enough!Quality as defined by few
defects is becoming the price of entry for
automotive marketers rather than a competitive
advantage.J.D. Power
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Whats Special?Customers will try low cost
providers because the Majors have not given them
any clear reason not to.Leading Insurance
Industry Analyst (10-98)
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We make over three new product announcements a
day. Can you remember them? Our customers
cant!Carly Fiorina, HP
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The surplus society has a surplus of similar
companies, employing similar people, with similar
educational backgrounds, coming up with similar
ideas, producing similar things, with similar
prices, similar warranties and similar
quality.Kjell Nordstrom and Jonas
Ridderstrale, Funky Business
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The 10X/10X Phenomenon10 Times Better/10
Times Less Different
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You do not merely want to be the best of the
best. You want to be considered the only ones who
do what you do.Jerry Garcia
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customer satisfaction to customer
successSource GE Power Systems
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Brand OutsideStrategy 1Lead the Customer!
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The customer is a rear view mirror, not a guide
to the future.George Colony, Forrester
ResearchIf you worship at the throne of the
voice of the customer, youll get only
incremental advances.Joseph Morone, President,
Bentley College
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Early Customer RejectionPost-Its 12
years!Chrysler MinivansVCRsFax
machinesFedExCNNHeart-assist
pumpsEtc.Source Fortune
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Good Bad/ 1 of 30,000We are crazy. We
should do something when people say it is
crazy. If people say something is good, it
means someone else is already doing it.Hajime
Mitarai, Canon
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Wealth in this new regime flows directly from
innovation, not optimization. That is, wealth is
not gained by perfecting the known, but by
imperfectly seizing the unknown.Kevin Kelly,
New Rules for the New Economy
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Benchmarking, Perils of The best swordsman in
the world doesnt need to fear the second best
swordsman in the world no, the person for him to
be afraid of is some ignorant antagonist who has
never had a sword in his hand before he doesnt
do the thing he ought to do, and so the expert
isnt prepared for him he does the thing he
ought not to do and often it catches the expert
out and ends him on the spot. Mark Twain
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Amen!The Age of the Never Satisfied
CustomerRegis McKenna
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Brand OutsideStrategy 2Master E-Commerce!
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30,000,000. ???
88
Dells Web sales daily
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2X 100 days (Internet traffic)2X 9 months
(network capacity)Source Red Herring (1-00)
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Tomorrow Today Cisco!7B of 10BSave 500M
(service and tech support)C.Sat e C.Sat
HCustomer Engineer Chat Rooms (1B?)
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And Larry?
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Cherry PickingVertical MarketsPlasticsnet.com
370B sellers pay 5K to 8K for storefront
5 to 10 cut Hook community services
(database, catalogs, forums, industry job bank,
etc.)
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B2B1999 2004 50X2004 7.4Source
GartnerGroup (per Reuters 1-26-00)
T
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Welcome to D.I.Y. Nation!Changes in business
processes will emphasize self service. Your costs
as a business go down and perceived service goes
up because customers are conducting it
themselves. Ray Lane, Oracle
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Anne Busquet/ American ExpressNot Age of the
InternetIs Age of Customer Control
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In the network economy, the Website becomes the
companys primary interface to the customer. The
user interface becomes the marketing materials,
store front, store interior, sales staff and
post-sales support all rolled into one.Jakob
Nielsen, Designing Web Usability
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Nielsen/Designing Web UsabilityAll Web projects
are customer-interface projects! Simplicity
rules! Make it easy for customers to perform
useful tasks!Less cool, more useful!Speed
rules!
98
Where does the Internet rank in priority? Its
No. 1, 2, 3, and 4. Jack Welch

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Web Strategy GE Power SystemsLaunch and
Learn/4 sites in 30 days
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Change Or Die!Most of the brick and mortars
look at the Internet as an add-on business
until they get a major scare. Then they either
change or die. You have to put all your heart
and soul in that direction, the way Charles
Schwab and Dell did.Flip Filipowski, divine
interVentures (Red Herring)
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There are 2 Kinds of Defensevs.Offense
Fend off upstarts.Reinvent our marketspace!
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Brand OutsideStrategy 3Design Rules!
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And Tomorrow Fifteen years ago companies
competed on price. Now Its quality. Tomorrow
its design.Robert Hayes
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All Equal Except At Sony we assume that all
products of our competitors have basically the
same technology, price, performance and features.
Design is the only thing that differentiates one
product from another in the marketplace.Norio
Ohga
105
Drop-dead Charm!The new Beetle fails at most
categories. The only thing it doesnt fail in is
drop-dead charm.Jerry Hirshberg, Nissan Design
International
106
Object of Desire!Every now and then, a design
comes along that radically changes the way we
think about a particular object. Case in point
the iMac. Suddenly, a computer is no longer an
anonymous box. It is a sculpture, an object of
desire, something that you look at.Katherine
McCoy, Michael McCoy, Illinois Institute of
Technology
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Design as SoulWe dont have a good language
to talk about this kind of thing. In most
peoples vocabularies, design means veneer. But
to me, nothing could be further from the meaning
of design. Design is the fundamental soul of a
man-made creation that ends up expressing itself
in successive outer layers of the product or
service.Steve Jobs
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Brand OutsideStrategy 4Its the Experience!
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Experiences are as distinct from services as
services are from goods.Joseph Pine James
Gilmore, The Experience Economy Work Is Theater
Every Business a Stage
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The Starbucks Fix Is on We have
identified a third place. And I really believe
that sets us apart. The third place is that place
thats not work or home. Its the place our
customers come for refuge.Nancy Orsolini,
District Manager
111
Safe, On Time and We defined personality as a
market niche. We seek to amuse, to surprise, to
entertain.Herb Kelleher, Main Man, LUV
Airlines
112
Experience Rebel Lifestyle!What we sell is
the ability for a 43-year-old accountant to dress
in black leather, ride through small towns and
have people be afraid of him.Harley exec,
quoted in Results-based Leadership
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Mantra Any good can be ing-edthe driving
experiencethe pumping experiencethe sitting
experiencethe reading experiencethe washing
experiencethe cooking experienceJoseph Pine
James Gilmore, The Experience Economy Work Is
Theater Every Business a Stage
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This is the end of the pure product era. For
instance, car makers are beginning to understand
that the car is a platform for delivering
services that drive the customer
experience.Carly Fiorina, HP _at_ Comdex 99
115
Brand OutsideBRAND POWER!
116
Brand?DistinctionExcellenceEmotional
SignatureTrustworthinessConsistencyShorthand
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Brand It! Now, More Than Ever!The increasing
difficulty in differentiating between products
and the speed with which competitors take up
innovations will assist in the rise and rise of
the brand.Gillian Law and Nick Grant,
Management New Zealand
118
No Room for Brands?NikeSaturnCNNAmerica
OnlineCharles SchwabStarbucksThe GapIntelEtc.
119
Brand Trust!Most buyers do not have a clue
whether anybody else makes a better
microprocessor, but Intel Inside has become a
trust mark - a trademark that consumers put
their faith in.The Economist
120
Calling the Corporate Shrink!Organizational
Psychotherapy/WHO WE ARE!
121
Corporate Religion is a completely new way of
thinking about companies. Today, the product is
still the main communication highway in the
company. When companies make the shift to selling
solutions, brands and attitudes communicating
the companys attitudes and values becomes the
decisive parameter for success. It demands that
you find out who you are as a company.Jesper
Kunde, Corporate Religion
122
Brand You Must Care!Success means never
letting the competition define you. Instead you
have to define yourself based on a point of view
you care deeply about. Tom Chappell, Toms of
Maine
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Brand Special Passion Connection
Caring (Way) beyond market research
124
The Ten Rules of Radical MarketingCEO must
own the marketing function!Hyper-lean Mktg.
Dept. (No filters!)CEO hangs out with
customers!Love Respect your customers!Just
Say No to market research!Hire only passionate
missionaries!Create a Community of
users-customers!Emphasize one-to-one marketing
tools!Celebrate craziness!Be insanely True to
the Brand!Sam Hill Glenn Rifkin, Radical
Marketing (e.g., Harley, Virgin, The Dead, HBS,
NBA)
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Brand LeadershipLead Out Loud!
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ENTHUSIASM RULES!I am a dispenser of
enthusiasm. Ben ZanderTP on Bob
Nardelli/GE Power Systems
127
Ann R.s Gospel

• Show up!
• Know your message!
• Put yourself at risk!

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If you ask me what I have come to do in this
world, I who am an artist, I will reply, I am
here to live my life out loud.Emile Zola
129
Id rather regret the things I have done than
the things I have not.Lucille Ball
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If things seem under control, youre just not
going fast enough! Mario Andretti
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THE END